SpringWorks Therapeutics Inc (SWTX) Reports Q3 2023 Financial Results
SpringWorks Therapeutics Inc (NASDAQ:SWTX) reported a net loss of $79.4 million for Q3 2023, compared to a net loss of $72.4 million for the same period in 2022.
Research and Development (R&D) expenses increased to $37.5 million in Q3 2023, up from $36.1 million in Q3 2022.
General and Administrative (G&A) expenses rose to $46.5 million in Q3 2023, compared to $35.7 million in the same period of 2022.
As of September 30, 2023, the company had cash, cash equivalents, and marketable securities amounting to $422.4 million.
On November 2, 2023, SpringWorks Therapeutics Inc (NASDAQ:SWTX), a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer, announced its third quarter financial results for the period ended September 30, 2023.
Company Performance and Challenges
SpringWorks Therapeutics Inc (NASDAQ:SWTX) reported a net loss of $79.4 million, or $1.27 per share, for the third quarter of 2023. This compares to a net loss of $72.4 million, or $1.37 per share, for the comparable period of 2022. The increase in net loss was primarily due to higher operating expenses.
Financial Achievements
The company's cash, cash equivalents, and marketable securities were $422.4 million as of September 30, 2023. This robust financial position provides the company with the necessary resources to continue advancing its clinical programs and operational activities.
Income Statement Highlights
Research and Development (R&D) expenses for the third quarter were $37.5 million, compared to $36.1 million for the comparable period of 2022. The increase in R&D expenses was primarily attributable to an increase in internal costs driven by the growth in employee costs associated with increases in the number of personnel, including an increase in stock-based compensation expense, partially offset by a decrease in external costs related to drug manufacturing, clinical trials, and other research.
General and Administrative (G&A) expenses were $46.5 million for the third quarter, compared to $35.7 million for the comparable period of 2022. The increase in G&A expenses was largely attributable to commercial readiness activities to support the U.S. launch of nirogacestat, if approved, for the treatment of adults with desmoid tumors.
Balance Sheet Summary
As of September 30, 2023, SpringWorks Therapeutics Inc (NASDAQ:SWTX) had total assets of $467.7 million, total liabilities of $72.8 million, and total stockholders equity of $394.9 million. The company's working capital, defined as current assets less current liabilities, was $382.1 million.
Company's Future Outlook
SpringWorks Therapeutics Inc (NASDAQ:SWTX) continues to advance its oncology pipeline with key milestones on the horizon. The company is on track to report topline data from the Phase 2b ReNeu trial of mirdametinib in patients with NF1-PN in the fourth quarter of 2023. Additionally, the Prescription Drug User Fee Act (PDUFA) target action date for the New Drug Application (NDA) for nirogacestat for the treatment of adults with desmoid tumors is set for November 27, 2023.
Explore the complete 8-K earnings release (here) from SpringWorks Therapeutics Inc for further details.
This article first appeared on GuruFocus.
